Dyckerhoff (a subsidiary of Buzzi Unicem) plans to build a greenfield cement plant with a cement capacity of about 2Mt in the Orenburg region, located about 35km from the Kazakhstan border. The new plant is expected to be completed and in operations by 2010. Total project cost is estimated up to 250 million euro, to be financed out of existing cash reserves and expected future internal financing.
The new plant will benefit from favorable transport links, due to direct access to the main railroad between Moscow and Tashkent, allowing for a broader reach. The chosen location will enable the group to supply the markets north of the Volga/Ural region as well as those of north-west Kazakhstan up to the Caspian Sea. Both the Russian and the Kazakhstan markets are booming, and particularly the economy of the Orenburg region and Kazakhstan is propelled by the presence of exploited oil and gas reserves, which would guarantee the new initiative a controlled and steady growth.